Media ShopTalk: w/c 15 March 2010

Media ShopTalk:   April 2010 Well, with all the holidays, short weeks and general pre Soccer World Cup mania, April has been a month of scarce communication from us!   We do apologise, but you’ll be happy to know that we are back on track and will be sending out regular communications once again! On the 1st of May – yes Saturday – a brand new TV operator will be launching in South Africa:   TOP TV If you have been watching the press and the industry digital newsletters you will know that this is a new satellite TV network promising to bring digital TV into homes across South Africa.    Isn’t this interesting considering that there has been no communication as to where or how the average man in the street can get access to this network. We are lead to believe that seven packages for the consumer will be available and the monthly subscription costs will range from R99 to R249 depending on the bouquet of channels that are selected.    The programme genres include News and Knowledge, Movies, Family and Sport, Kids, Music and Culture and the channels are detailed below.

The consumer will require a new setup box in order to enjoy these channels, just like DSTV, and these boxes will be made available through major retailers. Having surfed the TOPTV website, we are none the wiser as to which retailers and what the recommended retail price for the box is, so we can therefore well assume that these are not available as yet?   It is interesting however that you can fill out a “subscriber” form on line and select your programme genres etc. What we do know is that the box will not have PVR capabilities to commence with, however by this should be available in November 2010 – or no later than February 2011.... So who are their target market?   TOPTV have indicated that those people falling into LSM groups 4 and 5, and LSM 6-9 will be their main markets.   This is interesting as DSTV have long tried, and only recently managed, to attract those in the lower LSM groups through their cheaper bouquets and content offerings.   TOPTV are wanting to increase their base by 130 000 new subscribers per annum but as we all know, Pay TV stations have to abide by the ICASA regulations and make the majority of their profit through subscriptions and not through advertising.  It’s been estimated that TOPTV will require a subscription base of 300 000 per annum to break even in the first five years – a tall order? But talking of advertising, we have heard that there will be no advertising sold on any channels during the first year.  This could well be a USP in the beginning for TOPTV, however we have no doubt that there are many of you, our valued clients, who would consider placing advertising on these channels.   When advertising is allowed, the decision of which channels, at what price and for which “piece” of the total or small TV viewing market, will you consider paying for. Our jobs as Media Strategists/Planners/Implementors will just be more complicated than ever – not to mention the ongoing issues with the sizes of reporting panels!    But let’s cross that bridge when we get to it... Information has been sourced from the TOPTV and On Digital Media websites. And to end, a quote:- “Television is becoming a collage -- there are so many channels that you move through them making a collage yourself. In that sense, everyone sees something a bit different”.

David Hockney http://www.famous-quotes.com/author.php?aid=3482

Until next week!
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Formed in 1988 and located in Johannesburg, Durban and Cape Town, one of SA’s leading media agencies, The MediaShop’s 360-degree offering goes beyond merely planning and buying, instead follows carefully defined strategies. The MediaShop modus operandi is to integrate with each client’s business goals and objectives across all communication channels. The MediaShop integrates into client’s marketing team, ensuring the target market not only sees, but internalises, the advertising message. This is The MediaShop. “Open 24 hours… no problem!” For more information, visit www.mediashop.co.za <http://www.mediashop.co.za/>